Tag Archives: S&P United States LargeMidCap
Turning the Tide: Global Markets Outperforming U.S. Equities
Since 2000, annual returns of international equities have been better than those of the U.S. only nine times, as shown by Exhibit 1. After the Global Financial Crisis of 2009, the S&P United States LargeMidCap outperformed the S&P World-Ex-U.S. Index in most years. However, for the first time since 2017, developed market equities have ended…
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Navigating the Global Index Landscape amid Tariff Volatility
In an environment of rapidly evolving trade conditions, understanding the nuances of index performance across countries is essential. As trade policies fluctuate and central banks carefully evaluate the economic outlook, the repercussions for markets and global commerce may be significant. Reflecting on the past couple of years, it is noteworthy that the 12-month total return…
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Combining the Quality Factor With Carbon-Efficient Portfolios – A Higher Quality Tilt With a Lower Carbon Footprint
In a previous blog, we highlighted that carbon-efficient firms tended to be high-quality companies. Moreover, integrated quality + carbon-efficiency hypothetical portfolios tended to have higher risk-adjusted returns and were more carbon efficient than the underlying benchmark. In this blog, we look into the risk and return characteristics of those hypothetical portfolios. This exercise helps us…
- Categories Factors, Sustainability
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Carbon-Efficient Portfolio Construction Part 2: Sector-Relative Improves Efficiency
In a prior blog, we demonstrated that unconstrained carbon-efficient portfolios have significant unintended (and unfavorable) sector and risk factor tilts that can drag down performance. In this follow-up blog, we explore potential ways sector-relative, carbon-efficient portfolios can address the drawbacks of sector-unconstrained, carbon-efficient portfolios. To form sector-relative, carbon-efficient quintile portfolios, we ranked and grouped securities…
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Carbon-Efficient Portfolio Construction Part 1: Unconstrained Versus Sector Relative
As more institutions start to adopt low-carbon investing into their investment processes, it’s important to understand portfolio implications of incorporating carbon risk. We recently published a research paper in which we demonstrated how carbon efficiency can be integrated into factor portfolios. In a series of blog posts, we will be discussing our findings. We evaluated…
- Categories Factors, Sustainability
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- Factors, Sustainability
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